{"id":44226,"date":"2021-06-12T15:54:31","date_gmt":"2021-06-12T12:54:31","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=44226"},"modified":"2025-08-31T15:59:54","modified_gmt":"2025-08-31T12:59:54","slug":"jpmorgan-analysts-question-bitcoins-benefits-for-el-salvadors-economy","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/jpmorgan-analysts-question-bitcoins-benefits-for-el-salvadors-economy\/","title":{"rendered":"JPMorgan Analysts Question Bitcoin&#8217;s Benefits for El Salvador&#8217;s Economy"},"content":{"rendered":"<p>El Salvador&#8217;s <a href=\"https:\/\/forklog.com\/en\/news\/el-salvador-passes-bill-recognizing-bitcoin-as-legal-tender\">as legal tender<\/a> recognition of Bitcoin does not bring the state notable economic benefits, according to JPMorgan analysts. The statement was published in a new investor note dated June 11.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">JP Morgan on El Salvador adopting <a href=\\\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\\\">#Bitcoin<\/a><\/p>\n<p>Notice the last line\u2026 <a href=\\\"https:\/\/t.co\/5hl0kR9WB0\\\">pic.twitter.com\/5hl0kR9WB0<\/a><\/p>\n<p>\u2014 Documenting Bitcoin \ud83d\udcc4 (@DocumentingBTC) <a href=\\\"https:\/\/twitter.com\/DocumentingBTC\/status\/1403351711352250374?ref_src=twsrc%5Etfw\\\">June 11, 2021<\/a><\/p>\n<\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Analysts stressed that such a move could jeopardize negotiations with the International Monetary Fund (IMF). On June 11, IMF spokesperson Gerry Rice <a href=\"https:\/\/forklog.com\/en\/news\/imf-sees-risks-in-salvadoran-bitcoin-payments-legalisation\">said<\/a> that Bitcoin legalization carries risks and regulatory challenges.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cJust as in the case of dollarisation in the early 2000s, this step does not appear to be driven by concerns about stability. It is more oriented toward growth. However, it is difficult to see any tangible benefits for the economy from adopting Bitcoin as a second form of legal tender,\u201d JPMorgan analysts said.<\/p>\n<\/blockquote>\n<p>The bank&#8217;s specialists said the more important question is the implications for large economies, including their tax, banking, and financial regulation.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThese measures could be complicated if this is the start of a broad trend among small states in similar circumstances,\u201d the analysts added.<\/p>\n<\/blockquote>\n<p>Beno\u00eet C\u0153ur\u00e9, head of BIS&#8217;s innovation hub, called the legalization of Bitcoin payments in El Salvador \u201can interesting experiment,\u201d according to Reuters.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cWe do not believe Bitcoin has passed the test as a means of payment. Bitcoin is a speculative asset that should be regulated accordingly,\u201d the BIS senior manager explained.<\/p>\n<\/blockquote>\n<p>ForkLog experts <a href=\"https:\/\/forklog.com\/en\/news\/experts-weigh-bitcoins-impact-on-el-salvadors-economy-it-cannot-get-worse\">said<\/a> the precedent set by El Salvador could equally attract investment inflows as well as capital outflows.<\/p>\n<p>Earlier, President Nayib Bukele <a href=\"https:\/\/forklog.com\/en\/news\/el-salvadors-president-proposes-bitcoin-mining-powered-by-volcanic-energy\">proposed<\/a> to mine the first cryptocurrency with volcanic energy.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news in our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>El Salvador&#8217;s recognition of Bitcoin as legal tender is not expected to bring the state notable economic benefits, according to JPMorgan analysts.<\/p>\n","protected":false},"author":1,"featured_media":44227,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1430,1278,229,1138],"class_list":["post-44226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bis","tag-el-salvador","tag-jpmorgan","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"50","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/44226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=44226"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/44226\/revisions"}],"predecessor-version":[{"id":44228,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/44226\/revisions\/44228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/44227"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=44226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=44226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=44226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}